By MA Yue, ZHAO Xiaojuan
Carrefour China will work with a district government in eastern China’s Anhui Province on digital business and supply chains. Yingjiang District in Anqing, will offer much needed funds.
Yingjiang government owns equity of four companies, and one of them has an investment in Suning.com, the owner of Carrefour China.
In August last year, Yingning Supply Chain Management Group was founded by the government of the district, with Suning.com holding 30 percent of stakes. On Monday Suning.com and Yingjiang announced a cooperation to boost the district’s e-commerce and retail businesses.
Local state assets are usually more interested in projects with long payback periods, such as chips, lithium battery and electric vehicles, as they are more profitable and bring more taxation in the long run. But retailing business has recently caught their eyes, for the payback – good or bad – is much quicker.
Last week, Qujiang Culture Group, a state-asset of Xi’an, the capital city of Shaanxi Province, bought 107 million shares in RenRenLe Commercial Group, a retailer that has been wandering on the edge of bankruptcy for more than a decade. Qujiang Culture took over the RenRenLe because it is still operating in Xi’an. RenRenLe supermarkets in the city saw 1.72 billion yuan revenue last year, outperforming the whole southern China region, where its headquartered is based.
Qujiang Culture said with its resources, the company is confident to rejuvenating RenRenLe. Yingjiang probably has similar plans. Anqing is an inland port with a mature logistics industry. Carrefour China may get some help in its supply chains as well as cash.
For Carrefour China, it seems no private capital is willing to take over such a hot potato, especially after Suning.com’s failed attempt.
Back in 2021, rumors broke out that the government of Qingdao in Shandong Province was in talks with Carrefour China on a potential takeover, but nothing transpired.
A source close to the matter told Jiemian News as Carrefour is elatedly announcing its cooperation with Yingjiang, the fund is yet to arrive, changes may still happen. The move reflects how desperate Carrefour is to calm its fuming suppliers, the source said.
